There’s been a significant increase, over recent years, in illegal activities by both Wall Street firms and corporate individuals which, has led to innocent people becoming subject to stock or securities fraud.
When we first start off in investing in the stock and securities market, the majority of us will use a brokerage firm or broker, to act on our behalf and advise us on what is a good investment. Sadly, for several investors, the faith we put into our broker is abused and our investment is made use of in very high risk investments which only profit the broker and not the investor.
You will discover numerous ways in which our trusted brokers can risk, or even lose, our investment including retaining important information and facts concerning the risks involved in the investment, churning (selling of securities to create high commissions), and excessive trading and over concentration.
Stock fraud can very easily be averted if you are scrupulous from the start. Investigate the company or broker extensively and ask for references from past clients if possible. Ensure you obtain all information concerning any investment and do not invest in any deals that you do not feel one hundred percent comfortable with. Remember, it is a broker’s requirement to present all paperwork regarding any investment.
Keep an eye on the stock market yourself on the web and, if you are new to the stock and securities market, then stick to shares, stock and the money market to play safe.
If you have been unlucky, and have become subject to stock or securities fraud, then it is important to use a qualified and experienced securities expert to help you try and recover some of your loss. Give as much paperwork and info as you can to your securities expert to enable them to recoup some, if not all of your investment.